I think in your context, your translation of it sounds like it would be right, but I if you say a person is mal foutu it could also mean they were ugly, along with other things like LIttlmouse's suggestions.
By the way, Littlemouse do you know why "barré" is used in that sense? "badly-barred" seems an odd thing to say. Or is it linked to the sense of se barrer - to leave; so it could mean something like "to have got off to a bad start" ?
Interesting, so the verb se barrer would come from the same thing then I suppose, to sail a ship (away)?